Oil/Gas exploration and Propane industries are the backbone of American energy industry. These fuels are used in heating, transportation, cooking, hot water, refrigerants, aerosol propellants and vehicles. There are variety of companies involved in production, marketing, storage, fabrication of tanks, distributors and transportation of these fuels.
Propane, Oil and Gas companies often face severe cash flow issues due to large number of accounts receivables. Recovering money on these delinquent accounts can quickly become critical if adequate measures are not taken on time. Strong recovery actions are required on accounts that become 60 to 90 days past due. This is where a collection agency with experience in energy industry steps in and recovers maximum money in a cost effective manner.
The debts involved for the Oil, Gas and Propane industries can be both B2B and B2C in nature. Therefore it is important to hire a collection agency which performs both consumer and commercial collections.
Cost of collections:
Commercial collections are contingency based. The cost varies between 25% to 40% depending on the outstanding amount and age of the debt. In contingency collections, if an agency does not collect, they do not get paid.
Consumer collection includes low cost debt collection letters for an average $15 per account. For debt collector calls, contingency rates of around 40% apply.
Contingency fees for filing a legal suit costs between 35% and 45%.
A collection agency will advice you which is the best and most cost effective service to recover money. If the balance on accounts is high, lower collection fees can be negotiated.
Contact us if you are looking for a collection agency with experience in energy industry.